“Don’t Get Caught in Shanghai With Your Transistors Down.” Cyber Insurance Update for Technology Risk Advisors

February 25, 2016

Updates

In the current issue of Global Technology’s Risk Advisor Series, “Don’t get caught in Shanghai with your transistors down,” these high-tech manufacturers can learn how to better manage risk in five global risk categories:

  1. Global product liability
  2. Overseas safety, injury and illness
  3. Global supply chain interruption
  4. Global long distance transit
  5. Global insurance and compliance with foreign unlicensed insurance laws

High-tech manufacturing is a crucial component of the U.S. economy. From the smartphones in our hands to sophisticated medical equipment that saves lives, high-tech manufacturing has advanced dramatically over the past decade. While many high-tech manufacturers are based in the U.S., many also have operations overseas, in countries where costs can be much lower than the United States. Many “fabless” semiconductor companies design and sell their products in the U.S. but do not have their own manufacturing equipment and clean-room infrastructure to make their products here. Instead, they contract with foreign semiconductor foundries. The top four semiconductor companies are headquartered in the United States; however, the top four semiconductor foundries are located in Taiwan, Singapore and China. A global supply chain brings global exposures that high-tech manufacturers must manage. Companies who understand these risks will be better positioned to protect themselves from liability should something go awry. This issue of Travelers Technology Risk Advisor exposes some of those risks and highlights actions high-tech manufacturers should consider as part of an overall effort to manage global risks.

-Mike Thoma Chief Underwriting Officer, Global Technology, Travelers Insurance

Follow the link above or here to learn more about assessing your business’ technology risks and how to better guard against them!

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